DNO returned to the North Sea in 2017 after years of expansion in the Middle East focusing on Iraqi Kurdistan, with the aim of growing via acquisitions and other investments.

Faroe, which operates in the Norwegian North Sea, expects to produce between 12,000 and 14,000 barrels per day in 2018, while DNO’s output in the third quarter was around 81,500 barrels of oil equivalent on a company working interest basis.

“Having embarked on a hostile deal, DNO commenced a negative campaign which ... might have undermined its own investment case, and raised questions about its ‘need’ for asset diversification. Assuming completion of this deal, we believe that DNO needs to get on the front foot and talk up its business case,” RBC said.

At 1028 GMT, Faroe shares were up 4.3 percent at 160.2 pence, while Oslo-listed DNO’s stock was up 4.4 percent at 15 Norwegian crowns.